Magellan quits as Australia Test sponsor

Magellan has quit its naming rights deal with Australian Test cricket, calling the ball-tampering scandal "inconsistent with our values".

Co-founder and chief executive Hamish Douglass said cheating, which has led to the suspension of captain Steve Smith, vice captain David Warner and opener Cameron Bancroft, was unacceptable.

The ASX-listed financial services provider on Thursday joined brands including Weet-Bix, LG, Asics and Commonwealth Bank in scrapping sponsorships due to the sandpaper scandal in the third Test in South Africa.

Magellan said its three-year sponsorship of Australia's home Tests, which only began with the most recent Ashes series, had been based on shared values and reputations of integrity, leadership and dedication.

"A conspiracy by the leadership of the Australian Men's Test cricket team, which broke the rules with a clear intention to gain an unfair advantage during the third test in South Africa, goes to the heart of integrity," Mr Douglass said.

"Regrettably, these recent events are so inconsistent with our values that we are left with no option but to terminate our ongoing partnership with Cricket Australia.

Mr Douglass said the decision had been taken with great sadness.

"We were delighted with the recent Magellan Ashes Series sponsorship and it is with a heavy heart that we have to end our partnership in these circumstances," he said.

Neither Magellan nor Cricket Australia said how much the deal was worth when they announced it in August last year.

But Magellan's annual report released the same month said its marketing expenses that would increase by between $8 million and $8.5 million in 2018 largely due to the Test sponsorship.

Magellan, which only spent $3 million on marketing in 2017, said at the time that "time would tell" whether the sponsorship would prove the right move.

Commonwealth Bank also distanced itself from the mess on Thursday, dropping the former captain from his role as an ambassador.

"While appreciating the work Steve Smith has done in partnership with us to support cricket for all Australians, in light of recent circumstances we have concluded our current arrangement with Steve as a sporting ambassador," the lender said in a statement.